This paper analyses the savings behaviour of natives and immigrants in Germany. It is argued that uncertainty about future income and legal status (in case of immigrants) is a key component in the determination of the level of precautionary savings.
The paper uses data from the German Socio-Economic Panel Study (SOEP) to analyze start-ups by foreigners in Germany. The regression results are the following: First, foreigners in self-employment are found to earn more than foreigners in a regular ..
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